One key concern expressed about the policy is whether employers would shift the burden of their contribution back on to employees by switching to a total remuneration model.
Twemlow declared business owners have a responsibility to take care of their people.
“You know what you’re doing if you’re talking about it. It wouldn’t be what I declare is good business practice, and in the current environment it’s not the case, but it’s not always going to be like this.
“There will be a alter and it becomes an employee’s choice on who they work for. If those businesses are good businesses that take care of their staff, they’re going to choose them.”
She also expressed support for incorporating 16- and 17-year-olds into the scheme, and declared they requireded to learn the value of saving at an early stage.
Twemlow also supported the prospect of building KiwiSaver compulsory at some time in the future.
Reinvestment opportunity
Roscoe Price Moor, founder of travel start-up Roady, declared any increase in employer contributions is “definitely felt”.
“Particularly as we’re operating on lean margins and balancing cashflow with product development and expansion plans. That declared, we’re committed to supporting our team’s long-term financial wellbeing,” Price Moor declared.
Price Moor couldn’t declare whether the alters would create him reconsider hiring or remuneration decisions, but suggested the additional funds raised under the proposed alters could be utilized elsewhere.
“It would be great to see some of these funds invested back into supporting the start-up ecosystem here in New Zealand.
“Initiatives that assist Kiwi businesses scale and ultimately create more local jobs, while supporting their employees, would have a real benefit for the wider economy.”
Tarreceiveed effects
Ben Davin and Mark White-Robinson, co-founders of KiwiSaver start-up Feijoa, also supported the alters and declared the timeline should allow businesses to adjust to the increase as it’s phased in.
“Increased contributions will improve both individual outcomes – like receiveting into first homes and retirement security – and national outcomes through greater capital depth for infrastructure,” Davin and White-Robinson declared.
“We’d also hope the alters creates downward pressure on fees across the indusattempt, with providers passing some benefit back to members through lower costs – which would further improve long-term outcomes for savers and strengthen the overall effectiveness of KiwiSaver.”
However, the pair declared the alters were PAYE-centric and didn’t assist people outside employment or those who can’t afford higher contributions, suggesting they may stop saving altoreceiveher.
“Locking up a repaired percentage of wages doesn’t work for everyone.”
They declared tiny businesses don’t have a “magic pot of super-profits” they can rely on to fund greater contributions, and they expected slower increases in remuneration outside KiwiSaver to balance the situation.
They declared if tiny businesses can’t offset higher contribution costs by adjusting wages, it may impact their hiring decisions and timing.
“Ultimately, it’s a balance between encouraging people to save and invest for their retirement, while giving the tools and flexibility for people to easily find what works for them.”
Tom Raynel is a multimedia business journalist for the Herald, covering tiny business, retail and tourism.
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